FX.co ★ Dollar Drops on Mideast Ceasefire

The dollar index fell 0.5% to around 99 on Wednesday, reaching a four-week low after President Donald Trump postponed for two weeks his threatened strikes on Iranian civilian infrastructure. He described the move as part of a “double-sided ceasefire,” conditional on Iran reopening the Strait of Hormuz. Trump also said the US had received a 10-point proposal from Iran, calling it a “workable basis for negotiations,” with the two-week period intended to allow time to finalize a potential agreement. At the same time, Iran has agreed to reopen the crucial shipping lane for two weeks if all attacks cease, and Israel has reportedly accepted the ceasefire terms. On the data front, US consumer inflation expectations rose in March, while transportation costs in the logistics sector registered a notable increase. Looking ahead, Friday’s release of US March CPI data is expected to offer further insight into price pressures that may be tied to the ongoing conflict.